Input Tax Adjustment

The input tax adjustment phase begins after the input tax correction phase. It lasts up to the end of the correction period.

Threshold values § 44 (1), (2) UStDV
The input tax adjustment phase is not required

In accordance with § 44 (2) UStDV, an adjustment of the input tax deduction is not required for a calendar year in the input tax adjustment phase

Input tax adjustment
The monthly adjustment amount is calculated from:

(Current option rate - Base rate) x Inp.Tax from APC
Number of correction months

In the input tax adjustment phase, the input tax treatment has to be carried out once a month.

Reversing input tax correction amounts
Since the threshold values of § 44 (2) refer to a calendar year, these values are only checked at the end of a calendar year. If the calculated values fall below both threshold values, the input tax adjustment carried out during this calendar year is reversed.

Input tax distribution and account determination

Input Tax Distribution

Account Determination

The base rate is compared with the current option rate of a calendar month.
The difference between the base rate and option rate results in an input tax adjustment.

Non-deductible input tax is posted as expense or revenue to the corresponding accounts to be defined in Real Estate Customizing.